Is visibility the only thing that Supply Chain Control Tower has to offer?

Do You Need a Supply Chain Control Tower?

All companies plan, but not all companies plan well. This is especially true in the context of processes as volatile as supply chains, where fluctuations can mean a 20% increase in costs, a 30% drop in customer satisfaction, or even more drastic impacts during unforeseen disruptions (we can’t forget the butterfly effect of Suez Canal blockage, can we?).

Even with all the specialized technologies out there to manage the growing amount of data and complexities in supply chains more than 80% of the data goes unanalysed.

Hence, it’s not surprising to see that 69% of supply chain leaders still feel that their investments are not delivering the expected results. And this lack of insight and outcomes makes it tough for them to optimize network performance, proactively handle events, and keep an agile network that can respond to changing constraints.

Hence for a Chief Operations Officer tackling these challenges, moving towards a supply chain control tower just makes sense as the next step.

In simple terms, it’s a concept that combines people, process, data, organization to enhance visibility and improve decision making. However, its implementation might differ according to the areas of concern.

What are The Control Towers in Supply Chain?

More recently, some companies have started to experiment in creating “supply-chain centres”. While all control towers aim to enhance visibility and responsiveness, different control towers cater to specific needs and focus areas within the supply chain. But the core nomenclature of supply chain control tower consists of:

1. Planning command centre

The Demand-Supply Control Tower, also called the Planning Command Center, merges sales forecasts, market trends, and historical performance data to enhance the equilibrium of demand and supply.

Now the working of this tower is twofold. At first, The Planning Command Center’s demand sensing capabilities monitor real-time sales data against the parameters (Primary sales forecast, Actual Shipment data) for dynamic adjustments to forecasts.

While the Demand Planning command center handles forecasted and actual demand, the Supply Planning command center manages shipments and discrepancies in planned data. Alongside, it keeps tracking important KPIs like Primary Forecast Accuracy, Primary Forecast Fidelity and keep a check on Daily Sale and Stock Report and fulfillment reports for better insights. This ensures that supply aligns with actual market needs, significantly reducing the risk of stockouts or excess inventory.

2. Logistics control tower

From managing multi-modal transportation and distribution of goods throughout the supply chain to including last-mile delivery, logistics control tower literally is with you till the end. Offering real-time insights into costs, truck utilization, and advanced shipping features it enhances the visibility in inbound and outbound logistics.

Continuing with the utilization of exception handling, it detects possible delays or interruptions immediately, enabling quick responses to reduce impacts on delivery timelines. This proactive method enables logistics teams to tackle problems before they worsen, guaranteeing more seamless operations.

3. Warehouse control tower

A logical extension logistics and fulfilment tower, The Warehouse Control Tower improves warehouse operations by ensuring effective handling of goods from receipt to dispatch. Through real-time stock levels monitoring, it gives information on the availability and whereabouts of products, while using automated processes for selecting, packaging, and delivering to decrease mistakes and enhance efficiency.

Further, by keeping track of employee productivity and optimizing labor allocation according to workload, the control tower in supply chain management simplifies procedures, shortens order fulfillment times by enhancing inventory visibility and management, and decreases operational expenses by optimizing labor utilization and minimizing waste.

4. Inventory Control Tower

True to its name, the focus of this control tower is to manage inventory levels throughout the entire supply chain to maintain optimal stock availability.

Therefore, it gives a centralized view of inventory, showing stock across various locations such as warehouses and distribution centers.

By integrating demand forecasting, it aligns inventory management with anticipated market needs, preventing stockouts and overstock situations. Automated replenishment alerts trigger notifications for reordering based on predefined thresholds or demand changes, streamlining the restocking process.

5. Material management tower

Usually a part of fulfillment tower, The Material Management Tower oversees the flow of raw materials essential for production processes. Why this tower is revolutionary because it not only implements quality assurance checks but also monitors supplier performance by evaluating reliability based on delivery times, quality metrics, and compliance with contracts for incoming materials.

By analysing material usage trends many companies have optimized procurement strategies. This has helped them to negotiate better terms with suppliers and reduce costs by 10% - 15% on average.

6. Fulfillment tower

Now with 92% of companies agreeing to the value which OTIF standardization can create, it is important your network tracking mechanisms to be at the same pace too. While most companies take fulfillment as part of the logistics, having it separate can help not only track but also identify root causes for order non-timely delivery.

Hence, a fulfillment tower offers complete order tracking from start to finish, allowing both customers and teams to monitor orders in real-time, enhancing transparency.

By tracking KPIs like order accuracy rates and fulfillment lead times, performance analytics you can investigate delayed, blocked, and incomplete orders enabling adaption of strategies based on changing customer preferences or operational challenges.

.

Now by seeing supply chain control tower in action, it’s natural to think what value addition these control towers will provide to my organization. What you might be eager to uncover is how Power BI can elevate these functionalities to new heights. So, let’s get into that.

Into the Brain of Supply Chain Control Tower with Power BI

Although organizations recognize the advantages of supply chain control towers, many still face challenges in implementing them. However, Polestar x PowerBI ‘s composable approach is making it easier for organizations to quickly deploy these control towers through:

1. Real-time data integration and visibility

A popularly known benefit of having a supply chain control tower is E2E visibility. And rightly so. Power BI excels in aggregating data from multiple sources, providing a 360-degree view of the supply chain.

To do so, it utilizes two main nodes to connect to various data sources - DirectQuery and Import Mode. Each mode serves distinct purposes depending on the organization's needs for data access and analysis.

For example, if a user filters a report to view current stock levels, DirectQuery fetches the latest data directly from the ERP system, ensuring stakeholders always see up-to-date information.

In contrast, the Import Mode involves loading data into Power BI’s memory. This is done by extracting data from various sources, transforming it as needed, and then storing it for quick access. This helps in dealing with smaller datasets (under 1 GB) that do not require frequent updates.

And by connecting to different systems like ERP, CRM, and inventory management, it allows organizations to see real-time data, providing stakeholders with the latest information.

2. Advanced analytics and predictive insights

One of the main advantages of using PowerBI for supply chain control tower is its ability to deploy machine learning models within the tool. With Data Analysis Expressions (DAX), users can generate calculated columns and measures to gain a more in-depth understanding of their data. This customization guarantees that decision-makers can easily access the metrics that are most important to them.

Further using Predictive analytics capabilities of Azure ML facilitates predictive modeling & Power BI empower supply chain professionals to forecast demand accurately, plan for multiple scenarios, and identify potential disruptions before they occur allowing for real-time predictions based on current data.

This customized method improves user involvement and supports decision-making based on data.

3. Seamless collaboration across the supply chain

Power BI enables collaboration among supply chain partners by providing a shared platform for data access and analysis. Power BI's Publish to Web and Power BI Embedded functionalities allow businesses to securely share interactive reports with both external and internal parties. This environment for collaboration enables stakeholders to exchange insights and warnings about supply chain performance, resulting in faster problem-solving to ensure all partners are on the same page and working towards shared objectives.

4. Conveying information through beautiful visuals

As organizations seek to maximize the advantages of their supply chain control towers, the role of effective data visualization cannot be overstated. Well-designed supply chain control tower dashboard serves as critical tools for translating complex data into clear, actionable insights. To ensure that these dashboards deliver maximum value, it is important to implement best practices that enhance clarity and usability.

Bonus Content

Best practices for creating dashboards for supply chain control tower implementations

With this foundation in mind, let’s explore some essential best practices for crafting compelling dashboards in Power BI:

• Identify Key Metrics: Focus on the most relevant KPIs for your organizations, such as inventory turnover rates, order fulfillment times, or supplier performance metrics.


• Use Visual Elements Wisely: Incorporate charts, graphs, and maps that best represent the data being analysed. For instance, use line charts for trends over time or bar charts for comparing quantities across categories.


• Interactive Filters: Use interactive filters like slicers and filters in your dashboards to enable users to personalize their views by selecting particular parameters (e.g., time periods, product categories).


• Consistent Layout: Ensure that the layout remains consistent in all dashboards to improve user experience and simplify information access.


• Storytelling with Data: Use a narrative approach in your dashboard design by guiding users through the data insights logically, highlighting key findings and implications.

This is Just the Start!

Congratulations on being equipped with the knowledge of how supply chain control tower implementation is done. But this is just the start of your supply chain optimization journey.

It’s a fact of life: Just as businesses change, so do technology landscapes in the market. The future will demand you not only adopt these technologies but also continuously evolve their strategies to harness their full potential.

As consumer expectations shift and new disruptive technologies emerge, establishing a Supply Chain Control Tower (SCCT) has become a ‘must have’ capability for organizations aiming to thrive. And Polestar solutions is here to help!

So, whether you are a supply chain manager looking to better you’re reporting or a Chief Operations Officers working towards optimizing your network better, the time for implementing Supply Chain Control Tower is now.